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Celebration of First Audit Diwas:

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Why in the news?

The Prime Minister unveiled the statue of Sardar Vallabhbhai Patel at the office of the Comptroller and Auditor General (CAG) of India to mark the First Audit Diwas (16th November, 2021)

Key highlights:

  • This is the First edition of the Audit Diwas is celebrated to mark the historic origins of the institution of CAG and the contribution made by it to the governance, transparency and accountability.
  • Shri Girish Chandra Murmu assumed office as the Comptroller and Auditor General of India on 8th August 2020.

What is CAG?


    • Comptroller and Auditor General of India (CAG)
    • CAG is the Constitutional Authority in India.
    •  It was established in accordance with Article 148 of the Constitution of India. 
    • The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG). 
    • He is the head of the Indian Audit and Accounts Department.
    • The CAG is the statutory auditor of Government-owned corporations.
    • The accountability of the executive to the Parliament in the sphere of financial administration is secured through audit reports of the CAG.
    • The CAG has been ranked at 9th place in the order of precedence. 
    • It enjoys the same status as the sitting judge of the Supreme Court.
    • Appointment: Appointed by the President of India by a warrant under his hand and seal.
    • Tenure: A period of six years or upto the age of 65 years, whichever is earlier.
    • Not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.
  • Salary and other service : conditions are determined by the Parliament.
  • The administrative expenses of the office of the CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India.

Constitutional provisions:

  • Art. 148:  broadly speaks of the CAG, his appointment, oath and conditions of service
  • Art. 149:  broadly speaks of the Duties and Powers of the CAG
  • Art. 150:  The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
  • Art. 151:  Audit Reports: The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.

Duties:

  • He audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
  • He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
  • He audits all transactions of the Central and state governments related to debt, sinking funds, deposits, advances, suspense accounts and remittance business.
  • He advises the President with regard to the prescription of the form in which the accounts of the Centre and states shall be kept.
  • He acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.

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